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CCC Student Loan Borrowing Direct Loans – 2012-13 SubsidizedUnsubsidized Students Receiving Loans* Total Students Total Received Total Students Total Received 53,73251,476$ 167,482,97632,154$ 122,110,434 Average Loan $ 3,254$ 3,798 Percent of 2.1 million students 2.56%2.45% 1.53% *Includes students borrowing both Subsidized and Unsubsidized Direct loans.

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Financial Literacy Initiative  Partner with the National Endowment for Financial Education (NEFE) – Cash Course  Provide each school in the California community college system with effective financial literacy services for their students  To have a financial literacy product established on all 112 campuses  Monitoring the implementation of this financial literacy product such that student utilization shows an increasing trend over the first five years

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Loan Default Correlation to Student Success  Hypothesis – Students who are more successful are more likely to complete their program and graduate. Thus, successful students have greater ability (economically) to repay student loan debt Student success Successful repayment

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Final Remarks  The ED states that Financial Literacy is key to successful repayment  Early financial knowledge plays a small but lasting role in reducing risky financial behaviors – APLUS Research  Most Millennials lack financial literacy and are not aware of their lack of financial knowledge – Global Financial Literacy Excellence Center (GFLEC)  It is the right thing to do: provide life skills that students can use in their lives, long after their college experience  Initiative’s Assumption: Financial education and financial capability will result in student academic success